Business > EXAM > macroeconomics final exam | 90 Questions with 100% Correct Answers (All)

macroeconomics final exam | 90 Questions with 100% Correct Answers

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Total income households have after paying taxes and receiving government transfers - ✔✔disposable income Market failure may occur because - ✔✔individual actions have side effects that are no... t properly taken into account by the market A graphical representation of the relationship between the total quantity of goods and services demanded and the price level - ✔✔aggregate demand curve If banks were required to keep 100% of deposits in reserves, they could - ✔✔make no loans The point on a business cycle when real GDP stops falling and begins rising - ✔✔business cycle trough In the long run, changes in the money supply - ✔✔affect only the price level but they do not change aggregate output The double coincidence of wants problem can be solved by - ✔✔money An inflationary gap can be closed with - ✔✔a decrease in government purchases Monetary policy affects GDP and the price level by - ✔✔changing aggregate demand The short-run aggregate supply curve is positively sloped because - ✔✔wages are sticky or don't readily adjust to changes in economic conditions in the short run nominal GDP - ✔✔that year's output times same year price real GDP - ✔✔base year price times that year's output The money spent on domestically produced final goods and services - ✔✔is the GDP, appears as income to someone, and appears in the circular flow model Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital with a fixed technology, eventually [Show More]

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